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Cape Town rates ruling

In his judgment, Judge Lee Bozalek found that in enacting section 21 of the Local Government Laws Amendment Act, Parliament had not complied with two provisions in the Constitution - that the section be published for public comment before it was tabled in Parliament, and that the Financial and Fiscal Commission be consulted before it was enacted. Bozalek accordingly ruled that section 21 and the city's 2002 rating resolution were unconstitutional and invalid.

However, the ruling is automatically suspended until it has been confirmed by the Constitutional Court. Bozalek also interdicted the city from recovering rates based on the provisional valuation roll, but, at the same time, suspended the order for a period of one year from the date of an order of confirmation by the Constitutional Court to allow parliament to correct the procedural defects.

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